Does Social Security Pay for a Caregiver? Exploring Financial Assistance Options

Introduction

When it comes to managing the financial strain of caregiving for an older adult, understanding how Social Security can help is essential. Our research with primary caregivers of people with dementia shows that all participants, regardless of financial status, acknowledged the financial strain accompanying caregiving. 

You might be asking yourself, does Social Security pay Americans enough to alleviate caregiving costs? The answer isn't straightforward. As of 2021, the average monthly Social Security benefit for retired workers was around $1,543. However, it's important to note that this amount is far from affording the average costs of professional home care services to complete custodial tasks. According to Genworth's 2021 Cost of Care Survey, the average monthly cost of home care services in the United States is approximately $4,576. Breaking this down further, it averages out to around $1,144 per week and roughly $163 per day.

While Social Security benefits offer valuable support for retirees, they often don't cover the costs of hiring professional caregivers for tasks like bathing, cooking, and cleaning. If caregiving becomes too much for the nuclear family, exploring options such as Medicaid, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) is crucial. These alternatives can provide a glimmer of hope, as they may offer provisions for caregiver compensation. 

Our research indicates that caregivers struggle to navigate the complexities of financing long-term care, highlighting a need for more accessible solutions to ensure quality care for themselves and their loved ones.

Main Points

• There may need to be more than social Security benefits to cover the costs of hiring a professional caregiver for custodial tasks, such as bathing, cooking, and cleaning, due to the disparity between benefit amounts and the average expenses of home care services.
• Understanding Social Security's limitations in providing direct financial assistance for caregiving is essential for caregivers seeking to manage the financial strain associated with caring for an older adult.
• Exploring alternative options like Medicaid, SSDI, and SSI may offer more income-raising options and is advisable for individuals facing challenges in meeting caregiving needs beyond what Social Security benefits can support.

Determining Eligibility for Other Financial Assistance Options to Pay Caregiver Expenses

While Social Security can help provide a base income for a family, paying for caregiving expenses can still strain finances. Some may not have the work history to qualify for social security payments in the first place. That is why understanding the eligibility requirements for other public financial assistance programs is crucial.

Both the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are programs designed for the public to provide programs that have specific criteria that must be met, but can provide additional financial resources that can alleviate some economic pressures for families.

Unfortunately, $30 billion in financial aid for seniors is unused each year because families are unaware of eligibility requirements or unable to apply for aid without support. By understanding these criteria, caregivers can feel empowered and informed, knowing what steps they need to take to access these resources.

Eligibility Criteria for SSDI and SSI

To qualify for SSDI, you must have:

• Accumulated a certain number of work credits, which varies based on your age and when you became disabled.
• A medical condition that meets the Social Security Administration's definition of disability.
• No longer be able to participate in "gainful activities" (i.e., work).

The average SSDI payment is $1,277 per month as of 2021. Once you reach retirement age, SSDI monthly payments are converted to Social Security payments. The Social Security Administration commonly approves disabilities such as musculoskeletal disorders, mental health conditions, cardiovascular conditions, respiratory disorders, neurological disorders, cancer, immune system disorders, and sensory impairments like vision or hearing loss.

These benefits primarily support individuals with disabilities and are not intended to directly pay caregivers. However, beneficiaries can use the benefits at their discretion, potentially to compensate a caregiver.

While SSDI provides financial assistance to individuals with disabilities, SSI is a needs-based program offering financial support to individuals with limited income (including any social security benefits). Typically, individuals with a lower number of work credits at retirement age utilize this program to pay for basic necessities like food, housing, and transportation.

For SSI eligibility, you must demonstrate:

• Limited income and resources
• Age (65 or older), blindness, or disability
• U.S. citizenship or eligible noncitizen status

For example, consider a woman aged 72 who was diagnosed with early-stage dementia, preventing her from working further. She qualifies for SSI instead of Social Security because she has not met the work credits required to utilize the program, and now she is receiving an average monthly benefit of $794 for SSI instead. This income covers her essential expenses such as rent, groceries, and medical co-pays.

In contrast, consider a 55-year-old woman who worked as a teacher for most of her adult life and was diagnosed with early-onset dementia, forcing her to stop working. Despite her relatively young age, she can no longer perform her job duties effectively. Since she has accumulated enough work credits throughout her career, Sarah qualifies for Social Security Disability Insurance (SSDI) rather than Supplemental Security Income (SSI). As a result, she receives an average monthly SSDI benefit of $1,300 for basic necessities.

Applying for SSI or SSDI involves gathering medical and financial records, completing forms accurately, and submitting them to the Social Security Administration (SSA). This process may seem daunting, but it's important to remember that many caregivers have successfully navigated it. After review, if approved, you can start receiving monthly benefits. Logging onto the SSA website and reviewing eligibility and application instructions is the best way to get started if you need these public services to pay for the necessities of caregiving for an older adult. This reassurance can help caregivers feel more confident and less anxious about the application process.

Navigating Medicare and Medicaid for Support

When you or a loved one needs a caregiver, the costs can add up quickly. Do you have a clear understanding of the available support options available to you through Medicare or Medicaid? Many caregivers are surprised at what is covered, including one participant in a study we conducted on the challenges caregivers face who said

"Medicare doesn't step in and won't help even with the in-home health unless she [care reciepeient] has a broken hip. And then they'll help with that. But for dementia alone, they don't want you to put them in a nursing home, but they also won't let you keep them [at] home or [give] help." - Source.

Let's explore these public healthcare insurance programs, including Medicaid, Medicare, and resources specifically for veterans.

Medicaid and Medicare Support for Caregivers

Medicaid and Medicare are two key sources of financial assistance for healthcare-related expenses, including those that accompany older age like dementia, mobility issues, and major medical illnesses. However, the specifics can be complicated for Americans to navigate, especially when caring for an older adult, parent, or spouse with disabilities.

Medicaid may cover some caregiver expenses, but this varies by state. For example, some Medicaid programs allow you to receive payments for caregiving, potentially even for caring for a family member. To identify available assistance, check out the Benefits Checkup program by the National Council on Aging; it might provide you with tailored information regarding your eligibility.

Medicare typically doesn't pay for long-term caregiving but might offer certain benefits for short-term care that requires skilled nursing care or physical therapy. It's worth it to discuss your situation with a Medicare representative , whom you can contact by dialing the support number on your Medicare card . You can also visit the website of the Area Agencies on Aging and call their office to learn about specific Medicare programs that could assist you.

Veterans Affairs (VA) and Other Community Resources

If you're a veteran, VA benefits can be a significant source of support. However, the eligibility criteria can be confusing, as one participant in our studies pointed out, saying -

"He is a veteran. I've contacted the Veteran Association (VA), but you have to have a 70% or higher disability to gain access to their [long-term care benefits]..."

Through the VA, you might be eligible for financial assistance to pay for a caregiver, but you have to understand the nuances of service connection and eligibility. There is a great program to consider called the Aid and Attendance Benefit or Housebound Allowance, designed to help eligible veterans who need the aid of another person or are largely confined to their homes respectively. This benefit covers non-medical or custodial care to help with activities of daily living like bathing, toileting, cooking, and homemaking. Calling your local VA office or VA website is a good starting point to understand the VA benefits that may be available to you.

Implementing Care Strategies and Reimbursement

If you or a loved one needs a caregiver, it's crucial to understand how to strategize care and optimize resources to decrease costs. Knowing your options for home care can help you get started understanding the financial aspects of caregiving.

Home Care and In-Home Health Services

In-home care services provide assistance with daily activities, while home health care includes medical support for those with chronic illnesses. Neither of these is generally covered directly by Social Security, SSI, or SSDI, but you can indirectly use funds supplied by these programs to cover costs. In addition, there are other avenues you may be able to use to pay for home caregiving costs for a parent or spouse, including:

• Long-term care insurance may offer reimbursement for home care services, including the cost of aides or nurses.
• Personal savings or retirement benefits, potentially including your Social Security benefits, could be allocated to pay for these services.
• Some patients might qualify for durable medical equipment through Medicare, reducing out-of-pocket costs.
• Medicare covers most in-home medical care like home health and hospice
• Medicaid, in some states, can cover non-medical, custodial caregiving expenses for certain situations

Self-Directed Care and Medicaid Waiver Programs

Medicaid waiver programs, such as HCBS waivers, permit beneficiaries to manage their own home care services, often through consumer-directed care. This flexibility allows for personal choice in caregivers, including, in some instances, family members. Here's what you need to know:

• Eligibility requirements vary by state, but typically focus on those who require a nursing level of care.
• Self-directed care lets you manage your care services directly, potentially maximizing your Medicaid benefits.
• To participate, you may need to go through an application process for the Medicaid waiver program in your state.

Frequently Asked Questions

Navigating the Social Security system (and other public available financial assistance programs) can be complex, especially when you're seeking caregiver benefits. Below, you'll find detailed answers to some of the common questions about the support Social Security may provide to caregivers.

How can I apply for Social Security caregiver benefits?

To apply for caregiver benefits from Social Security, contact your local Social Security office or visit the Social Security Administration's (SSA) website. It's important to gather required documentation, including medical evidence and proof of any financial dependency, before initiating the process.

What eligibility requirements must a caregiver meet to receive SSI allowance?

An American citizen must meet several criteria to be eligible for Supplemental Security Income (SSI). These include income and asset limits, and in some cases, proving the essential need for care by the person receiving SSI benefits. The requirements are specific and detailed, so it's advised to check with SSA directly for exact guidelines.

Are there Social Security benefits available for home health aides caring for disabled individuals?

While Social Security benefits generally do not pay home health aides directly, disability recipients can manage their benefits to pay for such services. The role and pay of a home health aide, however, may be covered under different programs, like Medicaid or state-specific assistance programs.

In what ways does Social Security provide for respite care?

Social Security does not directly provide for respite care, but programs linked to Medicaid may offer some relief. The possibility of Social Security funds being used for respite care often depends on state-specific programs that provide a benefit to qualifying individuals.

Are family caregivers eligible for government assistance, and what programs are available?

Family caregivers are not directly paid by Social Security benefits, but government programs exist that can compensate caregivers. These include Medicaid's Cash & Counseling program or the VA's Aid & Attendance benefit, among others, which may allow payment to family members for providing care.

Author Bio

Dr. Logan DuBose is a MD and co-founder of Olera.care. He writes about dementia, Alzheimer's, and other age-related conditions. He is a Texas A&M MD/MBA alum. Olera specializes in merging clinical practice with innovative solutions for the aging population.